Find Trendy New Opportunities with TradeSmith’s Social Heat Score VIEW IN BROWSER BY MIKE BURNICK, SENIOR ANALYST, TRADESMITH This article also appeared in Inside TradeSmith In 2020, used video game retailer GameStop (GME) was quickly following in the footsteps of Blockbuster Video… that is to say, on its way out of business. Sales at its brick-and-mortar stores had been plunging for years due to the rise of digital gaming storefronts like Steam and competition from online retailers like Amazon.com (AMZN). GameStop’s finances were shaky, and it appeared to be following the exact fate that Blockbuster suffered at the hands of Netflix and other online streaming providers. But on GameStop’s way to a likely bankruptcy filing, an amazing reversal of fortune took place. Retail investors on social media, particularly Reddit, took a liking to GameStop – pushing the stock higher. And this social media following alone gave GameStop an incredible boost in early 2021 that not only saved it from bankruptcy, but also sent the stock on a moonshot – up more than 6,000% in less than a year! It’s the first instance I can recall where social media influence alone triggered such huge gains for a stock. It proves that online posts, search trends, and other web traffic can be incredibly valuable resources for investors… and one to pay close attention to when looking for new trade ideas. But you won’t have to trawl forums and study traffic charts to find the latest trends any longer: TradeSmith is now delivering this valuable data to all our members directly with the recently launched Social Heat Score. The Social Heat Score lies at the heart of a stock-picking technique developed by two of the newest members of Team TradeSmith, the brothers Andy and Landon Swan, that provides hidden insights into stocks about to soar higher – just like GameStop and its “meme stock” peers did back in 2021. | Recommended Link | | | | President Trump just signed a $13 billion mining deal with Australia… and it could spark a new American mining boom. While the media rages, Jeff Clark says this deal could send one stock soaring. This same “one-stock strategy” has handed his readers gains as high as 222% in 8 days – and this time could be even BIGGER. Click here to see how Trump’s newest deal could make you rich. | | | Essentially, the Social Heat Score is a “consumer insights engine,” as the Swans put it, capable of spotting the products, brands, and companies gaining momentum on Main Street before they become hot stocks on Wall Street… and before their stocks rise with the attention. It does this by capturing and analyzing millions of consumer data points from across the web every single day, including: - Social media posts on X, Reddit, YouTube, and Google…
- Company-level web traffic trends and app usage…
- And search trends and AI queries from across the internet.
As tens of millions of consumers take to the internet every day to chat about the products or services they love, or search for them online, the Swans’ insight engine captures this data in real time. The data gets tracked back to publicly traded stocks you can invest in. And they’ve distilled it all down into a simple 0 to 100 Social Heat Score: And the higher the score, the better. These scores give you an X-ray view into consumer trends related to hundreds of publicly traded stocks. And it’s not just for tracking shifts in consumer sentiment; this social heat data can also reveal new opportunities in some stocks that you’ve never even heard of before. Plus, when it comes to the value of that data, the proof is in the performance of the Social Heat Score. Over the past year alone, it’s spotted big winners like: - 145% on online learning provider Stride (LRN)…
- 461% on under-the-radar nuclear player Oklo (OKLO)…
- And 556% on trading platform Robinhood Markets (HOOD).
There are two easy ways for subscribers to access Social Heat Scores on TradeSmith Finance. First, simply navigate to the Dashboard section of the website and scroll down the page. If you have access to this valuable consumer data as part of a MegaTrends subscription, you’ll see a list of the Top 5 bullish and bearish stocks rated by their Social Heat Scores – as shown below:  For example, you can see Shopify (SHOP) earns a very high score of 99.2% – that’s off-the-charts bullish! Granted, that doesn’t always mean SHOP or the others here are automatic buys, but a high score does tell you that folks are excited about their products and services and that online chatter and search traffic is trending higher. And that’s often a big potential upside catalyst. Meanwhile, the Top Bearish list shown below includes stocks with low scores. PENN Entertainment (PENN) is at top of that list:  Stocks on the Top Bearish list aren’t necessarily bad companies to invest in, but they aren’t in the social media spotlight. So there’s little or no trending interest in their products or services. And keep in mind, you’re not limited to just the lists of Top Bullish and Top Bearish stocks when using this Dashboard tool. Use the “Search for ticker box” at the upper left to search for any stock you want – and if the Swans’ system can calculate a score for it, you’ll see it. If you don’t see the Social Heat Score on your TradeSmith Finance Dashboard, stay tuned: This week, we went live with an incredible opportunity to get your hands on this valuable data. More on that shortly… The second – and my personal favorite – way to incorporate the Social Heat Scores into your TradeSmith-powered market research is by using it as a search filter with our trusty TradeSmith Screener tool. To access the TradeSmith Screener tool, simply click on Invest from the top of your TradeSmith Finance Dashboard, then click on the Screener tab on the following page. We’ve added the Swans’ Social Heat Score data as a screener filter, so you can now use these trendy consumer insights, along with your preferred filters, in your latest stock screens. Here’s just one example of how I’ve implemented the Social Heat Scores into my own screeners:  For this screen, I kept things simple – just to illustrate the process. As you can see above, I included just three filters this time, to find stocks primed to benefit from lots of attention. Just click on the blue + Add Filter button to add and assign these filters to your own search: - Markets: Located in the Markets & Classification Click to select S&P 500 (SPX), but you can easily add more indexes or search among TradeSmith Baskets or Strategies, etc.
- TradeSmith Social Heat Score: You’ll find this filter under TradeSmith Proprietary Metrics. I set to more than 70 to narrow the list to the top 30% of scores.
- Quantum Score: Under the heading Quantum Edge Scores, I added Jason Bodner’s key metric for big money stock buys. And set it to more than 80 – the top 20%.
For my money, the Social Heat and Quantum Scores make a great combination. Think of the Social Heat Score as a bottom-up endorsement from millions of everyday folks excited about the company’s new products or services – so much that it’s trending online. Meanwhile, Jason’s Quantum Score is like a top-down endorsement that tells me savvy, institutional investors are also buying into the stock with big bucks. When you combine these two factors, that’s the kind of buying that can drive stocks much higher in price. When I ran this screen today, I got 16 results, with the top five shown below (and sorted by Social Heat Score, highest to lowest):  Delivery service Doordash (DASH) tops the list with a Social Heat Score of 95 (out of 100). That tells me more folks are using the DASH app, perhaps to order pizza and wings now that football season is in full swing! DASH also earns a very high rating from Jason’s Quantum Score at 90.5 (out of 100), which tells me the big money crowd is buying this stock as well… Mike Burnick’s Bottom Line: As yet another valuable addition to our TradeSmith arsenal of money-making data insights, the Social Heat Score can tell you when folks from across America, and even around the world, are highly engaged with a company’s products and services. You can easily build your own screen with this indicator and add more of your favorite TradeSmith data filters to give you an even higher conviction about your newest investment ideas. Good investing, 
Mike Burnick Senior Analyst, TradeSmith P.S. The Social Heat Scores developed by brothers Andy and Landon Swan add a new dimension to TradeSmith’s suite of market-scanning tools and algorithms: By tracking the sentiment of everyday consumers as they search and talk online, we can get an early look at trends before they make waves on Wall Street. That’s a powerful tool on its own – and one we can make good use of in tandem with TradeSmith indicators like the Quantum Score. But the Swan brothers aren’t content to just have a powerful tool… instead, they’ve been working to refine and expand on their social sentiment-based strategy. They found a powerful ally in our colleague Louis Navellier – Senior Analyst at our corporate partner, InvestorPlace. By combining the Social Heat Score with some of Louis’s own research, they’ve found a way to make their winning stock strategy even better. Together, Louis and the Swans have developed The Ultimate Stock Strategy, which tracks real-time investor sentiment and helps pinpoint stocks on the verge of explosive moves. And earlier today, they went live with a special event to reveal all the details. Click HERE to watch a replay of the event – and find out how to put the Social Heat Score to work. This new strategy could add hundreds of new doubles to the Swans’ list of winners… and more important, it could multiply your wealth more efficiently than traditional strategies could. You won’t want to miss out! |
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